the FSCS 35k guarantee limit clarification

hsp70

Can someone just clarify this for me. I know from reading the posts and articles that most of the banks registered with the FSCS will protect your savings to the sum of 35k pounds should the bank collapse.

But is this 35k pounds the sum deposited plus any interest accrued or 35k as a whole? Because obviously if i deposit 35k into an account, any interest due would immediately be over the 35k limit and i assume unprotected.

opinions4u

£35k tops. If you believe the FSCS has any value, move your interest elsewhere.

Personally, I don't have any faith in a fund that has £4bn in it when personal savings are well in excess of £100bn in this country.

And for the banks to fund the full potential liability of the fund this would effectively mean abolishing interest on savings for the next 20 years or so!

Steve_xx

hsp70 wrote: »

Can someone just clarify this for me. I know from reading the posts and articles that most of the banks registered with the FSCS will protect your savings to the sum of 35k pounds should the bank collapse.

But is this 35k pounds the sum deposited plus any interest accrued or 35k as a whole? Because obviously if i deposit 35k into an account, any interest due would immediately be over the 35k limit and i assume unprotected.

Yes, you are correct. You get protection of your deposit plus any interest accrued upto a mamimum of £35, or 70K for a joint account.

Also worth noting is that if a bank should fail, the accruing of any interest would stop on the day that the bank failed and therefore if it took six months to sort it out and for you to have your deposit returned to, you would earn no interest during that period.

So, aim to put no more than 33k in a single account, assuming interest at 6%, and then you should be at the least risk. Or, put your money into Nothern Rock where currently the full amount of any deposit is protected, no matter how much that is!

hsp70

thx u, that has cleared things for me